Why Companies Use ERP Software

February 18th, 2012 by Joe Cevich

Enterprise resource planning software is typically used by large, multi-location companies to manage all of their computers and networks in one handy place. More commonly called ERP software, it helps streamline computer functions and allows executives to manage not only employees but communications with clients and potential clients as well.

A database is the heart and brains of any of this type of programming. A lot of times this database will be found at the company headquarters but this does not have to be the case all the time. Copies of past and present files, memos and other items are all kept in the database, making it very important.

When it comes to enterprise software, no program fits all companies. Each corporation must shop around and figure out what works the best for them. In fact, there are different programs according to the industry that a company belongs in. This includes but is not limited to medical, manufacturing, construction, distribution, human resources (HR), food service and more.

Many ERP packages come as a part of a larger business suite of products. This is not to say that you must purchase the entire suite, most companies will allow you to purchase without the suite. However, many times the additional products compliment the other programs and therefore could be useful to corporations. It is advisable to look them over to see if the add-ons have value.

With some programming, the corporation’s own IT department will handle installation. They may then handle training of other employees on how to use the new program. Others are set up so that representatives of the vendor will teach the IT department about installing and maintaining and even teach the employees. Who teaches who is completely dependent on the vendor and how they have their programming set up.

Once installed and operational, it can be set up exactly as the company wants for different users. Some employees may need more access than others, so permissions must then be granted. Other tweaks may be made but most ERP comes ready to use out of the box and is fairly easy to learn for most.

Using ERP software helps large corporations manage a large database across many locations. Whether those locations are within one company or global, this type of program is essential to streamline information. The upfront cost may be high but in the long run it will be a bargain with all the time and productivity it saves with its ease of use and capabilities. That is why so many companies take the plunge and invest in ERP software.

Check out our site for more information about ERP Architecture and ERP Cloud.

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ERP software

Enterprise resource planning (ERP) systems, erp software

Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. Their purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.ERP systems can run on a variety of hardware and network configurations, typically employing a database as a repository for information. Here is example of picture of erp software

erp software

Characteristics
ERP(Enterprise Resource Planning ) systems typically include the following characteristics:An integrated system that operates in real time (or next to real time), without relying on periodic updates.[citation needed]A common database, which supports all applications.A consistent look and feel throughout each module.Installation of the system without elaborate application/data integration by the Information Technology (IT) department.Finance/AccountingGeneral ledger, payables, cash management, fixed assets, receivables, budgeting, consolidationHuman resourcespayroll, training, benefits, 401K, recruiting, diversity managementManufacturingEngineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow, activity based costing, product lifecycle managementSupply chain managementOrder to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commissionsProject managementCosting, billing, time and expense, performance units, activity managementCustomer relationship managementSales and marketing, commissions, service, customer contact, call center supportData services Various “self–service” interfaces for customers, suppliers and/or employeesAccess controlManagement of user privileges for various processes. erp software

Erp software: Short for enterprise resource planning, ERP is business management software that allows an organization to use a system of integrated applications to manage the business. ERP software integrates all facets of an operation, including development, manufacturing, sales and marketing.ERP ModulesERP software consists of many enterprise software modules that an enterprise would purchase, based on what best meets its specific needs and technical capabilities. Each ERP module is focused on one area of business processes, such as product development or marketing. Some of the more common ERP modules include those for product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR. As the ERP methodology has become more popular, software applications have emerged to help business managers implement ERP in other business activities and may also incorporate modules such as CRM and business intelligence and present them as a single unified package. The basic goal is provide one central repository for all information that is shared by all the various ERP facets in order to smooth the flow of data across the organization.ERP VendorsDepending on your organization’s size and needs there are a number of ERP software vendors to choose from.Large Enterprise ERP (ERP Tier I): The ERP market for large enterprises is dominated by three companies: SAP, Oracle and Microsoft. (Source: EnterpriseAppsToday; Enterprise ERP Buyer’s Guide: SAP, Oracle and Microsoft; Drew Robb)Midmarket ERP (ERP Tier II): For the midmarket vendors include Infor, QAD, Lawson, Epicor, Sage and IFS. (Source: EnterpriseAppsToday; Midmarket ERP Buyer’s Guide; Drew Robb)Small Business ERP (ERP Tier III): Exact Globe, Syspro, NetSuite, Visibility, Consona, CDC Software and Activant Solutions round out the ERP vendors for small businesses. (Source: EnterpriseAppsToday; ERP Buyer’s Guide for Small Businesses; Drew Robb). Learn more about erp software here.

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